The two bills being processed in the Chamber that make up the spending cut package announced by the government will be reported by deputies Átila Lira (PP-PI) and Isnaldo Bulhões Jr. (MDB-AL). Rapporteurs are chosen by the President of the House, Arthur Lira (PP-AL), generally in agreement with the majority of party leaders.
The proposed amendment to the Constitution (PEC) that deals with spending cuts remains without a rapporteur.
Due to the Legislature’s dissatisfaction with the delay in releasing parliamentary amendments, the expectation is that the spending cut package will only be considered next week. Lira assessed that there is a lack of votes to approve the measures and that the uncertainty regarding the amendments hinders the progress of the matters.
The president of the Chamber called sessions from Monday to Friday over the next two weeks in an attempt to exhaust the agenda before the parliamentary recess, scheduled to begin on the 20th of this month.
Rapporteurs
Representative Átila Lira was chosen to report on Bill 210/2024, which provides for the blocking and contingency of parliamentary amendments up to the same proportion as the blocks applied to other non-mandatory government expenses, that is, up to 15% of the total amount .
The project also limits the use of tax credits above R$10 million if there is a deficit in public accounts. Furthermore, in cases of deficit, the text prohibits the granting, expansion or extension of fiscal inventions and also the increase in personnel expenses that exceed 0.6% above inflation.
MDB deputy Isnaldo Bulhões Jr. will be responsible for reporting on Bill 4614/24, which imposes new limits for the adjustment of the minimum wage and stricter criteria for granting the continued benefit benefit (BPC), measures that received criticism within the PT itself. The government already recognizes the possibility that this issue undergo changes.
The PL also limits the minimum wage adjustment to 2.5% above inflation. Currently, the base salary of the Brazilian economy is readjusted according to the growth of the Gross Domestic Product (GDP) of the previous two years. The project reported by Congressman Bulhões also establishes new rules for granting Bolsa Família and reduces transfers to the Constitutional Fund of the Federal District.
The objective of the projects is to adapt the growth of the Union’s expenses to the rule of the fiscal framework, which provides a ceiling for public spending. The economic team calculates that the measures should reduce expenses by around R$70 billion in the first two years and around R$325 billion in five years.
PEC 45
The only proposal in the spending cuts package that is still without a rapporteur is PEC 45/2024, which received special processing and can be discussed in the House plenary without needing to go through committees.
PEC 45/2024 is also part of the package, which gradually limits access to the salary bonus for those who receive up to one and a half minimum wages. Currently, workers who receive up to two minimum wages receive the bonus. PEC 45 also limits the so-called super-salaries of public servants, which exceed the salary cap for civil servants, among other changes.
